In this video, Barbara Bergstein, an accomplished estate planning attorney, and I discuss the probate procedure and the advantages of having you set up a living trust for yourself. Please watch it all the way through as there is valuable information throughout if your goal is to pass on property or assets so that they may function normally after you have passed away. If you establish a living trust, there is no need to be concerned about the lengthy and expensive probate process. Putting your wealth in the hands of an attorney is a terrific approach to protect owners of real estate or other assets. It will give them peace of mind and help them avoid probate if they know what will happen to their assets once they pass away. In the alternative, probate court will consume a lot of your family's time and financial resources because taxes on earned income would rise as higher valued returns would be forced into forced reinvestment rates. People need to understand how crucial it is to have a living trust today more than ever.
The Importance of a Living Trust
A living trust is an important estate planning tool that can help you protect your assets and your loved ones. It is a legal document that allows you to transfer ownership of your assets to a trustee, who will then manage the assets for the benefit of your beneficiaries.
The main advantage of a living trust is that it can AVOID PROBATE, which is the legal process of distributing your assets after you die. Probate can be time-consuming and expensive, so avoiding it can save your loved ones a lot of hassle.
Another advantage of a living trust is that it gives you more control over how your assets are distributed. With a will, you can only specify how your assets should be divided; with a living trust, you can actually transfer ownership of the assets to the trustee. This can be helpful if you want to provide for someone who is not financially responsible or if you want to make sure that certain assets are not sold in order to pay for long-term care expenses.
Finally, a living trust can be revocable or irrevocable. A revocable trust allows you to change the terms of the trust or even cancel it entirely, while an irrevocable trust cannot be changed once it has been created. Irrevocable trusts are generally more difficult to set up, but they can offer additional protections for your assets.
Types of Living Trusts
There are two main types of living trusts—revocable and irrevocable. A revocable trust allows you to make changes to it during your lifetime, while an irrevocable trust does not. Revocable trusts are more popular because they offer more flexibility. However, they can also be more expensive to set up and maintain. Irrevocable trusts are typically used for estate tax planning purposes.
Creating a Living Trust
If you decide that a living trust is right for you, there are a few steps you need to take in order to create one.
First, you will need to choose a trustee. The trustee is the person who will manage the assets in the trust for the benefit of the beneficiaries. You should choose someone who is responsible and trustworthy, as well as someone who lives close enough to easily administer the trust.
Next, you will need to funding the trust by transferring ownership of your assets into it. For most people, this will involve transferring ownership of their home and other real estate property into the trust. You will also need to retitle any bank accounts or investment accounts in the name of the trust.
Finally, you will need to create a written agreement that sets forth the terms of the trust. The agreement should include information about the trustee, beneficiaries, and what happens to the assets in the event that something happens to you or one of the beneficiaries.
If you have significant assets that you want to protect, then creating a living trust may be right for you. A living trust can help avoid probate and give you more control over how your assets are distributed after your death. There are two main types of living trusts—revokable and irrevokable—and each has its own advantages and disadvantages. Before creating a living trust, be sure to consult with an experienced estate planning attorney who can help ensure that everything is done properly and that your rights and interests are protected.
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